Despite facing challenges from competition and regulations, the company focuses on its payment processing network, revenue from fees, and value-added services to maintain relevance and success.
Mastercard is the second-largest card network in the US, accounting for over a quarter of purchase volume
Internationally, it contributed to almost a quarter of the $624 billion spent via payment cards in 2022.
The company boasts a market cap of over $360 billion as of May 2023 and has seen nearly 100% gain in shares over the past five years.
Mastercard is the most widely accepted card globally across countries, capitalizing on the ongoing transition towards a cashless society.
Mastercard operates as a payment processor, connecting consumers, merchants, acquirers, and issuers to authorize and settle transactions. It earns revenue from fees for processing transactions.
The company generates over 64% of its revenue from payment processing fees. It also provides value-added services in advisory analytics, data insights, and cybersecurity.
Mastercard competes with Visa and faces growing competition from various sources, including alternative payment methods and fintech companies.